C Review

Question 1

Infringement is covered by:

Select one:

a.
Personal Injury and Advertising Liability

b.
Premises and Operations Liability

Answer 1

Personal injury and advertising liability

Question 2

A Business Auto Policy may be used to cover each of the following EXCEPT:

Select one:

a.
a pickup or van.

b.
an earthmover.

c.
a tractor trailer.

d.
a truck.

Answer 2

An earthmover

Question 3

The Inside the Premises –Theft of Money and Securities Form covers money:

Select one:

a.
stolen by a corporate official.

b.
stolen from a corporate board member.

Answer 3

Stolen from a corporate board member

Question 4

Each of the following is a casualty coverage EXCEPT:

Select one:

a.
Auto

b.
Earthquake

c.
Employment Practices

d.
Commercial General Liability

Answer 4

Earthquake

Question 5

Under a crime policy, the insured who suffers a loss is required to:

Select one:

a.
file criminal charges against any suspect

b.
file a proof of loss form

Answer 5

File a proof of loss form

Question 6

After an accident involving a covered business auto, the insured must do each of the following EXCEPT:

Select one:

a.
notify the insurer and forward any summons to the insurer.

b.
protect the vehicle from further damage.

c.
authorize the insurer to settle within the policy limits.

d.
submit to examination under oath.

Answer 6

Authorize the insurer to settle within the policy limits

Question 7

Work comp benefits are set by:

Select one:

a.
state law.

b.
the policy.

Answer 7

State law

Question 8

Under an E&O policy, claims occurring during the policy period may be reported after the policy expires if the policy has:

Select one:

a.
an Extended Reporting Period

b.
a Retroactive Date

Answer 8

An extended reporting period

Question 9

A consent to settle provision protects the reputation of the:

Select one:

a.
insured

b.
insurer

Answer 9

Insured

Question 10

Persons covered under an auto policy are identified in which policy section?

Select one:

a.
Conditions

b.
Definitions

c.
Insuring agreement

d.
Exclusions

Answer 10

Definitions

Question 11

A “claims made” policy will always pay a covered claim that occurs:

Select one:

a.
Before the retroactive date.

b.
During the policy term even if it is presented after the policy term.

c.
During the policy term if it is reported and presented during the policy term.

d.
Any time.

Answer 11

During the policy term, if it is reported and presented during the policy term

Question 12

Which of the following policies contains a consent to settle provision?

Select one:

a.
Employment Practices Liability only

b.
Commercial Auto and Employment Practices Liability

c.
CGL and Employment Practices Liability

d.
E&O and Employment Practices Liability

Answer 12

E&O and employment practices liability

Question 13

A single limit auto policy provides $200,000 coverage. The Insured causes an accident in which 4 persons suffer injuries totaling $250,000. The Insurer must pay:

Select one:

a.
$200,000

b.
$250,000

Answer 13

$200,000

Question 14

Under a CGL’s “Other Insurance” clause, the two insurers will share the loss:

Select one:

a.
equally

b.
pro rata

Answer 14

Equally

Question 15

Which type of insurance has a deductible?

Select one:

a.
Workers Compensation

b.
Professional Liability

c.
Property Damage Liability

d.
Property Insurance

Answer 15

Property insurance

Question 16

The CGL’s Contractual Liability coverage does not apply to:

Select one:

a.
agreements to indemnify a municipality as required by ordinance

b.
lease agreements

c.
an agreement to indemnify an appraiser

d.
sidetrack agreements

Answer 16

An agreement to indemnify an appraiser

Question 17

If the insured with an umbrella must pay the first $1,000 of a claim, the insured must have had:

Select one:

a.
a self-insured retention layer

b.
an inadequate attorney

Answer 17

A self-insured retention layer

Question 18

Which of the following is considered to be a “custodian” under a commercial crime policy?

Select one:

a.
owner, partner, employee, or manager

b.
customer

c.
watchperson

d.
janitor

Answer 18

Owner, partner, employee, or manager

Question 19

A Business Auto policy covers:

Select one:

a.
pollution damage caused by a vehicular accident

b.
injury to the driver of the business auto

c.
injury to a pedestrian struck by the insured business auto

d.
damage to goods of others being transported

Answer 19

Injury to a pedestrian struck by the insured business auto

Question 20

Bodily injury caused by a hit-and-run driver is covered by:

Select one:

a.
underinsured motorist

b.
uninsured motorist

Answer 20

Uninsured motorist

Question 21

Contractual Liability Coverage covers liability:

Select one:

a.
implied by contract.

b.
assumed by contract.

Answer 21

Assumed by contract

Question 22

A CGL covers:

Select one:

a.
Liability assumed through a sidetrack agreement.

b.
Injuries to the Insured’s employees.

c.
Earthquake coverage.

d.
Auto accidents.

Answer 22

Liability assumed through a sidetrack agreement

Question 23

If you are hit by someone with no insurance, you should have?

Select one:

a.
underinsured motorist

b.
uninsured motorist

Answer 23

Uninsured motorist

Question 24

A driver’s personal auto policy has liability limits of $15,000, $20,000, $10,000. A passenger in the car suffered $17,000 bodily injury when the vehicle hit a building. The passenger’s bodily injuries are covered by:

Select one:

a.
physical damage

b.
collision

c.
liability

d.
comprehensive

Answer 24

Liability

Question 25

The transportation expenses following a deer damaging the auto are covered under the Personal Auto Policy’s: Select one: a. Collision coverage b. Comprehensive (Other Than Collision) coverage c. Medical Payments coverage d. Supplementary coverage

Answer 25

Comprehensive (other than collision) coverage

Question 26

The work comp policy provision covering workers in other states is: Select one: a. standard business liability b. other states coverage

Answer 26

Other state’s coverage

Question 27

A commercial umbrella does NOT cover: Select one: a. products and completed operations b. premises and operations c. auto liability d. home accidents

Answer 27

Home accidents

Question 28

A plumber negligently repaired a store's water pipe. Several days after the repairs were completed, the pipe burst damaging goods in the store. This would be covered under which section of the CGL? Select one: a. Premises b. E&O c. Contractual d. Products and Completed Operations

Answer 28

Products and completed operations

Question 29

The Inside the Premises - Robbery or Safe Burglary of Other Property form covers valuables stolen in which situation? Select one: a. the safe’s combination was written on the back of the safe b. there is visible damage to the safe c. a burglar guesses the safe’s combination d. the safe is left open

Answer 29

There is visible damage to the safe

Question 30

Products Liability covers: Select one: a. repair of defective products. b. product recall. c. personal injury liability. d. injuries from defective products sold to the public.

Answer 30

Injuries from defective products sold to the public

Question 31

Supplementary covers each of these EXCEPT: Select one: a. defense costs b. bonds c. medical payments d. costs of the insured in assisting the defense efforts

Answer 31

Medical payments

Question 32

The Inside the Premises - Robbery or Burglary of Other Property policy covers which of the following? Select one: a. damage to the building caused by the burglary b. theft from a vehicle c. employee theft of goods from the business d. a burglary where a large amount of cash is stolen

Answer 32

Damage to the building caused by the burglary

Question 33

If an accident occurs when an Insured is driving a vehicle owned and insured by another, which is generally correct? Select one: a. the vehicle's policy pays primary b. the driver's policy pays primary

Answer 33

The vehicles policy pays primary

Question 34

A CGL Insurer may use an audit to establish: Select one: a. whether a claim is covered by the policy. b. whether the Insured was negligent. c. the Insured’s solvency. d. the appropriate premium.

Answer 34

The appropriate premium

Question 35

A beautician inadvertently injures a customer when the beautician mistakenly applied a toxic chemical to the customer's skin. This would be covered by the beautician's: Select one: a. bodily injury liability under the CGL b. products liability c. E&O d. premises liability

Answer 35

E&O

Question 36

Which is a covered nonowned auto? Select one: a. A motorcycle operated by the Insured but owned by another member of the family. b. A car left with the Insured by a friend who is abroad for 3 years. c. An auto operated by the Insured but owned by another member of the family. d. A company car furnished for the Insured.

Answer 36

An auto operated by the insured but owned by another member of the family

Question 37

Employee embezzlement of money is covered by: Select one: a. Theft, disappearance and destruction b. Employee Dishonesty Form

Answer 37

Employee dishonesty form

Question 38

The surety will pay the bail bond’s penal sum to the obligee if the principal: Select one: a. fails to show up for trial b. dies

Answer 38

Fails to show up for trial

Question 39

A CGL covers each of the following EXCEPT: Select one: a. bodily injury b. property damage c. personal injury d. employers liability

Answer 39

Employers liability

Question 40

Personal and Advertising Injury Liability covers: Select one: a. breach of contract b. illegal activities c. pollution d. wrongful eviction

Answer 40

Wrongful eviction

Question 41

State law requires that commercial autos be covered for each of the following EXCEPT: Select one: a. physical damage b. supplementary c. property damage liability d. bodily injury liability

Answer 41

Physical damage

Question 42

A CGL's medical payments covers: Select one: a. a contestant in an athletic event b. an employee c. the insured d. a customer

Answer 42

A customer

Question 43

An insured can get a lower premium by: Select one: a. taking a per-loss deductible. b. waiving coverage for defense costs.

Answer 43

Taking a per-loss deductible

Question 44

M owns a business and is concerned about an employee lawsuit alleging wrongful termination. M should consider which of the following forms of liability coverage? Select one: a. business owner policy b. employment practices liability c. workers compensation d. commercial general liability

Answer 44

Employment practices liability

Question 45

Hitting a parked car is covered by: Select one: a. collision b. comprehensive

Answer 45

Collision

Question 46

Each of these is considered to be a Casualty Insurance coverage EXCEPT: Select one: a. commercial crime b. liability c. commercial auto d. flood

Answer 46

Flood

Question 47

A truck driver injured in a trucking accident would be covered under: Select one: a. work comp b. commercial auto policy

Answer 47

Work comp

Question 48

Which is a burglary? Select one: a. The clerk is thrown to the ground and money is taken from the clerk’s wallet. b. The door on the building is forced open and property is taken after business hours.

Answer 48

The door on the building is forced open and property is taken after business hours

Question 49

A building insured under a Premises Burglary policy suffers a loss of $350 cash, $2,000 stock, and $10,000 lost profits due to a closure caused by the burglary. The Premises Burglary policy will pay: Select one: a. $350 b. $2,000 c. $10,000 d. $12,350

Answer 49

$2,000

Question 50

Taking property by force or threat of violence is: Select one: a. burglary b. theft c. mysterious disappearance d. robbery

Answer 50

Robbery

Question 51

A Work Comp policy may cover each of these EXCEPT: Select one: a. Employer's Liability. b. Rehabilitation Benefit. c. Health Coverage for the worker’s family. d. Death Benefit.

Answer 51

Health coverage for the worker’s family

Question 52

A sexual harassment claim against a business would be covered by: Select one: a. Personal Injury coverage under a CGL b. Homeowner Liability c. Employment Practices Liability d. Bodily Injury coverage under a CGL

Answer 52

Employment practices liability

Question 53

Personal and Advertising Injury Liability covers each of these EXCEPT: Select one: a. Unfair competition b. Malicious prosecution c. Errors and Omissions d. False arrest

Answer 53

Errors and omissions

Question 54

A customer is accidentally injured by an appliance store employee. Under a commercial liability policy, the customer's bodily injury is: Select one: a. covered under Completed Operations b. covered under Directors and Officers Liability c. not covered d. covered under Premises and Operations

Answer 54

Covered under premises and operations

Question 55

Employment Practices Liability will cover which of the following claims? Select one: a. discrimination claims b. the expense of a union strike c. workers compensation d. the cost of complying with the Americans With Disabilities Act

Answer 55

Discrimination claims

Question 56

A Theft, Disappearance and Destruction form covers: Select one: a. A company's stock plummets in value. b. A company's money disappears.

Answer 56

A company’s money disappears

Question 57

A midi-tail extended reporting period (ERP) provides professional liability coverage: Select one: a. for claims reported at any future date. b. where the insurer is notified of the occurrence within 60 days after the policy expires, although the actual claim may then be filed within 5 years.

Answer 57

where the insurer is notified of the occurrence within 60 days after the policy expires, although the actual claim may then be filed within 5 years.

Question 58

After an auto accident, the auto policy requires the Insured to notify the: Select one: a. police b. Insurer

Answer 58

Insurer

Question 59

Molly's state requires 25/50/10 auto liability insurance. Molly is involved in an accident with an at-fault driver who only has 15/30/5 coverage. Molly is protected by her: Select one: a. underinsured motorist b. uninsured motorist

Answer 59

Uninsured motorist

Question 60

E&O covers claims arising from: Select one: a. intentional acts b. felonious acts c. wrongful acts d. auto accidents

Answer 60

Wrongful acts

Question 61

Self-insurers must comply with work comp regulations by: Select one: a. having at least $10,000,000 in cash to pay claims b. having a letter signed by the management team indicating solvency c. complying with state regulations d. requiring the workers to pay for their work comp

Answer 61

Complying with state regulations

Question 62

The term "retention" in an umbrella policy is similar to: Select one: a. franchise b. deductible c. subrogation d. supplementary

Answer 62

Deductible

Question 63

A tenant agrees to keep the leased premises in a clean and tidy condition. A pedestrian was injured by junk and debris on the sidewalk. This injury to the pedestrian would be covered by which section of a commercial liability policy? Select one: a. Contractual Liability b. Independent Contractors Liability c. Owner’s and Contractor’s Protective d. Premises and Operations

Answer 63

Premises and operations

Question 64

The parties to a bond include each of the following EXCEPT: Select one: a. donee b. surety c. principal d. obligee

Answer 64

Donee

Question 65

A grocery store customer accidentally injures another customer while placing a large bag of dog food into a shopping cart. The store's CGL will: Select one: a. cover this under work comp. b. not cover this at all. c. cover this under the CGL's liability section. d. cover this under the CGL's med pay section.

Answer 65

Cover this under the CGL’s med pay section

Question 66

Which deepens coverage only? Select one: a. excess liability b. umbrella

Answer 66

Excess liability

Question 67

An auto accident causing bodily injury and property damage results in: Select one: a. liability b. policy cancellation

Answer 67

Liability

Question 68

A mini-tail extended reporting period (ERP) provides additional coverage for: Select one: a. all future claims, no matter when filed. b. claims reported within 60 days after the policy expires.

Answer 68

Claims reported within 60 days after the policy expires

Question 69

If the insured desires to cancel a CGL: Select one: a. the insured may cancel by telephone. b. delivery of written notice by email is acceptable.

Answer 69

Delivery of written notice by email is acceptable

Question 70

The party who agrees to pay the insured (obligee) for loss caused by employee embezzlement under a Fidelity bond is the: Select one: a. obligee employer b. principal employee c. obligor d. surety

Answer 70

Surety

Question 71

The definition of “covered auto” in a personal auto policy does NOT include: Select one: a. a rental vacation car b. a new van purchased last week c. the insured’s trailer d. a company car available for the insured’s regular use

Answer 71

A company car available for the insured’s regular use

Question 72

A manufacturer who is sued for a defective toy would be covered by: Select one: a. errors and omissions b. products and completed operations

Answer 72

Products and completed operations

Question 73

Employee Dishonesty covers: Select one: a. Disappearance of inventory which can be proven only by a profit and loss computation. b. Dishonest actions of the insured. c. Disappearance of inventory which can be proven only by an inventory. d. None of the above.

Answer 73

None of the above

Question 74

Which policy section contains information about the defense of lawsuits covered by the policy? Select one: a. definitions b. obligations of the insured c. exclusions d. obligations of the insurer

Answer 74

Obligations of the insurer

Question 75

A business which uses its own fund sources to pay for injuries to workers is said to be covered by: Select one: a. self insurance. b. private insurance.

Answer 75

Self insurance

Question 76

The indemnity agreement is designed to protect the: Select one: a. surety b. obligee

Answer 76

Surety

Question 77

The Postal Service wants to guarantee that a contractor will be able to complete an addition to the post office according to the contract specifications. The contractor should purchase a: Select one: a. completion bond b. performance bond c. contract bond d. bid bond

Answer 77

Performance bond

Question 78

The insured’s reasonable expenses incurred while assisting the insurer with defense efforts are covered by: Select one: a. bodily injury liability b. property damage liability c. supplementary d. medical payments

Answer 78

Supplementary

Question 79

A business or personal auto policy may cover each of the following EXCEPT: Select one: a. bail bonds b. loss of earnings c. fines d. judgment interest

Answer 79

Fines

Question 80

Professional liability insurance is available for: Select one: a. dry cleaners b. plumbers c. pharmacists d. wholesalers

Answer 80

Pharmacists

Question 81

In a bid bond, the contractor is the: Select one: a. obligee b. principal

Answer 81

Principal

Question 82

A real estate agent desiring coverage for accidents occurring on a developable commercial lot should purchase: Select one: a. Personal Injury Liability b. Commercial General Liability

Answer 82

Commercial general liability

Question 83

A burglary policy covers the felonious removal of property: Select one: a. from an unlocked building. b. from a locked building which is broken into.

Answer 83

From a locked building which is broken into

Question 84

Which is a burglary? Select one: a. A thief breaks down a door after business hours and steals goods. b. A customer steals a watch from an open display counter.

Answer 84

A thief breaks down a door after business hours and steal goods

Question 85

A truck driver causes an accident which damages a car, injures the car’s driver, and causes the truck to leak chemicals into the ground. The truck’s business auto policy will NOT cover: Select one: a. bodily injury to the car’s driver b. damage to the truck c. pollution caused by the leaking chemicals d. damage to the car

Answer 85

Pollution caused by the leaking chemicals

Question 86

Supplementary Payments: Select one: a. provides for defense costs. b. has a deductible.

Answer 86

Provides for defense costs

Question 87

An employee waives worker's comp coverage. The worker's later work related injury would be: Select one: a. not covered b. covered by Commercial General Liability Coverage Form c. covered by Errors and Omissions d. covered by the employer

Answer 87

Covered by the employer

Question 88

Vicarious liability refers to liability for: Select one: a. pollution b. the acts of another c. future acts d. punitive damages

Answer 88

The acts of another

Question 89

Part 2 of the Worker Comp policy covers: Select one: a. Employer Liability. b. Property Damage Liability.

Answer 89

Employer liability

Question 90

Which can be purchased alone? Select one: a. comprehensive b. collision

Answer 90

Comprehensive

Question 91

Another name for the bond's premium is: Select one: a. the penal sum. b. the service fee.

Answer 91

The service fee

Question 92

Medical payments covers a tenant injured: Select one: a. in the tenant’s unit. b. in the unit occupied by the landlord.

Answer 92

In the unit occupied by the landlord

Question 93

Which bond covers employee embezzlement? Select one: a. fidelity b. bid

Answer 93

Fidelity

Question 94

If the insured desires to cancel a CGL: Select one: a. the insured may only cancel on the anniversary date. b. the insured may do so by giving written notice to the insurer.

Answer 94

The insured may do so by giving written notice to the insurer

Question 95

In a state requiring 25/50/5 auto liability coverage, the required coverage for BI per person is: Select one: a. $5,000 b. $10,000 c. $25,000 d. $50,000

Answer 95

$25,000

Question 96

To protect against client claims for failure to recommend the appropriate insurance, an insurance agent should have: Select one: a. Premises Liability b. Professional Liability

Answer 96

Professional liability

Question 97

Each of the following is automatically insured under a CGL EXCEPT: Select one: a. corporate officer’s spouse b. employees, corporate officers, shareholders and directors c. the partner’s spouse d. executor or property manager

Answer 97

Corporate officers spouce

Question 98

Molly's state requires 25/50/10 auto liability insurance. Molly is involved in an accident with an at-fault driver who only has 15/30/5 coverage. Molly is protected by her: Select one: a. uninsured motorist b. underinsured motorist

Answer 98

Uninsured motorist

Question 99

Under the CGL, the insured is: Select one: a. the person listed on the declarations sheet. b. the property.

Answer 99

The person listed on the declarations sheet

Question 100

An Excess Liability policy: Select one: a. eliminates the need for the underlying policy. b. deepens but does not broaden coverage

Answer 100

Deepens but does not broaden coverage